Cheney Bros. Co. v. Commonwealth of Massachusetts

Citations

• 246 U.S. 147
• 38 S. Ct. 295
• 62 L. Ed. 632
• 1918 U.S. LEXIS 1530
• 3 A.F.T.R. (P-H) 2965

Syllabus

<p>Massachusetts Stats., 1909, c. 490, Pt. Ill, § 56,. imposed an annual excise upon every foreign corporation, for the privilege of doing local business, of 1/50 of 1% of the par value of its authorized capital stock, subject, however, to a maximum limit of $2,000.00. Held, valid, as applied to corporations doing local as well as'interstate business, upon the authority of Baltic Mining Co. v. Massachusetts, 231. U. S. 68. International Paper Co. v. Massachusetts, ante, 135, distinguished.</p> <p>The following activities are held to constitute local business, affording bases for the tax:</p> <p>l; Keepmg up a stock of repair parts at a place of business, and supplying and selling them, in part locally, to users of machines made by the corporation in another State and sold in interstate commerce. Case of Lanston Monotype Co.</p> <p>2. Repairing automobiles made in another State and disposed of in interstate commerce, and selling second-hand automobiles taken in exchange for new ones so disposed of. Case of Locomo-bile Co. of America. .</p> <p>3. Where a corporation, to promote local trade in its product' manufactured in another State and sold in interstate commerce to wholesalers, maintained a local office with agents who solicited orders from local retailers and turned them over to local wholesalers, who filled them and were paid by the retailers. Case of Northwestern Consolidated Milling Co.</p> <p>4. Where a holding company had an office in the taxing State, pursuant to its articles, where it held stockholders' and directors’ meetings, kept corporate records and accounts, received and deposited in bank regular dividends, and paid the money, less salaries and expenses, regularly as dividends to its stockholders. Case of Copper Range Co.</p> <p>5. Maintaining a local office, pursuant to corporate articles, where proceeds of operations in another State are received, deposited locally, distributed to shareholders, less salaries and expenses, and where directors hold t